The project, in which ESIIC will invest over $7.5m, will replace the company’s consumption of mazut fuel oil with natural gas and is expected to reduce carbon emissions by an equivalent of 57,200 tons of carbon dioxide (CO2) per year for a period of ten years.
Masdar will monetise the emission reductions and provide advisory services required to register the project at the United Nations in line with the requirements of the Kyoto Protocol’s clean development mechanism (CDM).
Masdar will support the project execution in coordination with ESIIC and purchase the resulting carbon credits, thereby providing financial incentives for the development of the project.
Hassan Kamel Hassan Noman, CEO of ESIIC,said: ”This agreement marks an important milestone for ESIIC and we are proud to be paving the way within the sugar industry to develop a fuel-switch under the guidelines of the Kyoto Protocol’s Clean Development Mechanism (CDM).
“Through the cooperation with Masdar we aim to significantly reduce our emissions targets over the next ten years, and alleviate the negative impact that they are having on the environment.”
Sam Nader, director of Masdar Carbon, said: ”This is our first CDM project in Egypt and we look forward to supporting ESIIC in its quest to reduce its carbon emissions.
“We hope this agreement will act as a catalyst for other organisations to explore the financial and environmental benefits that CDM can offer. This project reinforces Masdar’s commitment to promote energy efficiency and sustainability in the region.”
